M Core and Hermes Properties start construction on first joint development: new Lidl store in L’Alcúdia, Valencia

First scheme under a partnership targeting up to €500 million of retail investment in Spain and Portugal over five years.

M Core, the pan-European commercial property investment and management collective, and Hermes Properties have started construction of a new Lidl store in l’Alcúdia, (Valencia). It is the first project delivered under the partnership’s programme to develop retail assets across Spain and Portugal, which targets investment of up to €500 million over the next five years.

The 7,418 sqm site sits on a main route into l’Alcúdia from the A-7 motorway, with direct links to Valencia and its metropolitan area. The new store will allow Lidl to relocate from its existing premises to a purpose-built unit designed to meet its operational requirements. Lidl will be the sole tenant under a long-term lease.

The scheme comprises approximately 2,400 sqm of retail and ancillary space, 128 parking spaces, four electric-vehicle charging points and dedicated loading and servicing areas. Completion is expected in Q2 2027.

Hermes Properties leads development management and leasing and co-invests alongside M Core, which provides investment capital. The partnership focuses on developing well-located retail parks and standalone retail units tailored to established operators and secured by long-term leases. 

Sebastian MacDonald-Hall, Chief Investment Officer (Europe), M Core: 

“L’Alcúdia is an important first step in our partnership with Hermes Properties and demonstrates our shared approach to identifying well-located sites and delivering high-quality retail developments for established operators. We see significant opportunities to build on this first project and develop a strong pipeline across Iberia.”

Juan Criado Docando, Managing Partner, Hermes Properties: 

“We are delighted to bring the first project under our partnership with M Core into construction. Our focus is on identifying well-located sites and delivering high-quality retail assets tailored to the needs of leading operators such as Lidl.”